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Pennsylvania Moves One Step Closer to Substantially Increasing White Collar Exemption Salary Threshold

In June 2018 the Pennsylvania Department of Labor and Industry (DLI) issued a proposed rule to substantially increase the salary threshold to qualify as an exempt Executive, Administrative and Professional (EAP) employee under the Pennsylvania Minimum Wage Act (PMWA), and invited public comment. On October 17, 2019, DLI submitted its final regulation to the state’s Independent Regulatory Review Commission (IRRC) and legislative oversight committees. IRRC will hold a public meeting on November 21, 2019 to decide whether to approve the final regulation. If it is approved, the final regulation would increase the EAP salary threshold under Pennsylvania law to:

Pennsylvania Commission Comments on Proposed Amendments to the Commonwealth's White Collar Exemption Regulations

In June, we reported that the Pennsylvania Department of Labor and Industry (DLI) submitted to the Pennsylvania Independent Regulatory Review Commission (IRRC) a proposed rulemaking package that seeks to update the Executive, Administrative and Professional (EAP) exemptions to the Pennsylvania Minimum Wage Act's (PMWA) overtime requirements. Among other things, the proposed changes would significantly increase the salary threshold required to meet the exemptions, automatically increase the salary threshold every three years, and change certain elements of the duties tests. As part of the rulemaking process, DLI requested comments on its proposed rulemaking from the public, members of the legislature, and IRRC.

Major Changes Proposed to Pennsylvania’s Overtime Rules

Employers with operations in Pennsylvania may want to take note of significant changes in the pipeline to the state’s wage and hour rules. Specifically, on June 23, 2018, the Pennsylvania Department of Labor and Industry (PA DLI) published proposed rulemaking containing drastic changes to some of the state’s white collar exemptions to the Pennsylvania Minimum Wage Act (PMWA).
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